How is pension taxed, and by who?

TadleyBaggie

comeandgo wrote: »

HMRC know nothing, you have to tell them everything and you will
probably have to complete your own tax returns too.

Agree with the first part, when I retired I made sure HMRC knew I was no longer working and had a company car etc.

I'm currently in receipt of the State Pension, a DB pension and drawdown from a SIPP. I asked HMRC if I could go onto self assessment but they would not allow it for reasons unknown.

I manage/monitor the tax coding via my Personal Tax Account.

fifeken

comeandgo wrote: »

HMRC know nothing, you have to tell them everything . . . . .

Not in my experience from as recently as last week. I received my first drawdown payment, logged on to the government website to let them know (I'd tried in advance and it told me to wait until I'd received the first payment) and the pension company payment was already recorded along with tax paid on it. I've since received through the mail a tax code notice with two codes.

AndyAdams

Albermarle wrote: »

Normally drawdown means taking all the tax free cash first and then drawing a potentially taxable income from the remaining 75%.What you propose is taking your pension by the UFPLS route , where when you take a sum of money , the 25% is tax free and 75% is taxable .
It is a perfectly valid way of taking pension money but is it is not drawdown.

I thought it would still be classed as drawdown, however in this scenario the whole pension has not been put into drawdown, just the 16k. Is my understanding incorrect?

xylophone

I thought it would still be classed as drawdown, however in this scenario the whole pension has not been put into drawdown, just the 16k. Is my understanding incorrect?

https://thepeoplespension.co.uk/help/knowledgebase/differences-flexi-access-drawdown-ufpls/